The British government has 'waited' for the acquisition of Avast by the long-established antivirus software 'Norton', and the acquisition negotiations are expected to be prolonged
The Competition and Markets Authority (CMA) of the United Kingdom announced on March 16, 2022 that the acquisition of Avast by Norton LifeLock, the manufacturer of the famous security product 'Norton' series, may hinder market competition.
CMA finds NortonLifeLock purchase of Avast could reduce competition --GOV.UK
NortonLifeLock's $ 8.6 bln Avast deal hits snag as UK raises concerns | Reuters
https://www.reuters.com/world/uk/uk-launch-in-depth-probe-into-nortonlifelocks-86-bln-deal-with-avast-2022-03-16/
In July 2021, it was reported that NortonLifeLock was in talks to acquire Avast Software. Since Avast Software, which is listed on the London Stock Exchange, has a market value of about 7.2 billion dollars (about 790 billion yen at the rate at that time), the final acquisition price is 8 billion dollars (about 880 billion yen). Is estimated to reach.
Will the developer of the long-established security software 'Norton' acquire 'Avast' for more than 880 billion yen?-GIGAZINE
by Tony Webster
As NortonLifeLock and Avast Software are both major security companies with a strong presence in the antivirus software market, CMA began an initial investigation on January 19, 2022 to consider the impact of the acquisition negotiations. In the first (PDF file) research report released on March 16, 'both companies are two of the three major antivirus software makers in the UK security market', and the last He pointed out that Microsoft Defender, which is one of the corners, is provided free of charge as a built-in function of the OS, so it is virtually a one-on-one situation.
According to CMA, internal sources from NortonLifeLock and Avast Software show that the two companies clearly see each other as close rivals. Consumer surveys conducted by both companies also show that their customers see their products as first or second alternatives.
Based on these findings, CMA said on March 16th, 'The two companies are in close competition and there are few other important rivals. Therefore, if the acquisition negotiations are completed, CMA will have competition in the UK market. We are concerned that it may shrink, which means that UK consumers who try to get security software are likely to be at a disadvantage. '
'If both companies do not offer a clear solution to our concerns, we will conduct a second phase of detailed investigation,' said CMA Executive Director David Stewart. If no solution is available, he intends to conduct further investigation.
NortonLifeLock told Reuters that 'the CMA decision is amazing' and has no plans to offer a solution. Avast has also maintained its stance that the merger of the two companies will benefit British consumers.
According to Reuters, NortonLifeLock's acquisition of Avast Software was initially scheduled to close in January 2022, but was postponed to April 4 to await UK and Spanish regulatory approvals. After that, approval was obtained from Spain, but it is expected that the completion of the transaction will be delayed from the middle to the second half of 2022 according to this CMA investigation.
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